Grape Tree targets expansion following EOT

An organic health foods retailer is positioning itself for its next phase of growth after restructuring its ownership to secure its future.

Grape Tree has completed one of the UK’s largest Employee Ownership Trust (EOT) deals, selling a majority stake in the business to its workforce as part of its succession planning. 

The move sees the organic health foods retailer transition to employee ownership while retaining its culture and values.

As part of the new structure, Campbell McDonald has been appointed chair of Grape Tree’s EOT board.

Operating across 190 stores across England, Wales and Scotland, the retailer is targeting revenues of more than £100 million. 

Following the deal, Grape Tree is planning to open a further 20 stores this year and continue investing in its product range. 

Around 150 new jobs are expected to be created across new locations and at its headquarters and specialist packaging operations in Kingswinford.

Chief executive and founder Nick Shutts said: “Grape Tree has come a long way since we started out in 2012, with the vision of creating a truly independent health foods retailer that always puts its customer first.

“This has been an approach that has helped us gain significant market share and we wanted to build on this by making sure our employees continue to be the heartbeat of our business.

“There was also a big piece of work around succession planning.

“This allows staff to take a share in the business without personal investment and, hopefully, sends out a clear message to our loyal customers that our original ethos is as strong as ever.”

The transaction was supported by professional services group DJH Halesowen, whose specialist EOT team, with support from its Manchester sister office, guided Grape Tree through the process, including valuation, share structure planning and tax advice. 

Mark Howell, director at DJH Halesowen, added: “This will arguably be the biggest of the 30 EOTs we have advised on to date.

“We’re delighted to have played a role in helping one of the UK’s fastest growing retailers write the next chapter in its history - with its employees a focal part of the story.”

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